What is the best type of mortgage loan?

Buying a home for the first time can be intimidating because
it may very well be the largest purchase you will make in your
lifetime; and you don't want to make a mistake. The first step
to buying a home is to seek mortgage pre-qualification and
pre-approval from a lender. There is a difference.
Pre-qualification means the lender will give the home buyer his
or her opinion of mortgage qualification. A pre-approval is a
more detailed and reliable estimate of the first time home
buyer's ability to buy a home. The lender will obtain your
credit report and determine whether there is any derogatory
information contained in the credit report that could deny you a
mortgage.

Which loan is the best?

1.
VA HOME LOAN - If you're an eligible veteran,
take advantage of the VA home loan benefit. Here's why.
There is no down payment requirement for a VA home loan.
The seller is permitted by the Veteran's Administration
to pay ALL closing costs for the buyer and a good
percentage of escrow and prepaid costs (i.e. real estate
tax and homeowner's insurance escrow).
Read more

2.
USDA HOME LOAN - The USDA home loans do not
require a down payment. That's right, zero down and the
seller is permitted to pay a large percentage of the
home buyer's closing cost. Unfortunately, there are
income limits and the house must be located in a rural
area as defined by the USDA.
Read more

3.
FHA HOME LOAN - The FHA mortgage has become
extremely popular over the past 10 years with first time
home buyers because the FHA
loan requires a small down payment of only 3.5% (3.5% X
$100,000 = $3,500). The seller is permitted to pay up to
6% of the buyer's closing costs (65 X $100,000 =
$6,000). The buyer can add a non-occupying co-borrower
(co-signer) to the loan. The FHA down payment can be
"gifted" by a relative and other approved donors.
Read more

4.
Conventional Loan - The conventional loan, also
called "conforming" loan is a mortgage that is not
backed by the Federal Government or Federal Agency. The
conventional loan is offered by banks and mortgage
lenders who then sell the loan to either the Federal
National Mortgage Association (Fannie Mae) or the
Federal Home Loan Mortgage Corporation (Freddie Mac).
The conventional loans are an ideal choice for home
buyers who have at least 5% down payment or greater.
Read
more

Who pays closing costs?

The
closing costs are typically paid by the buyer. Although,
the seller can pay a percentage of the closing costs
based on the type of loan (FHA, VA, Conventional. USDA,
if applicable) and written into the sales contract.
Learn more about
Seller Paid
Closing Costs

Who pays for the Realtor®
fees, buyer or seller?

In most transactions, the seller will pay the
commission, however, the payment may be paid by the
home buyer, if agreed to by buyer and seller and stated in
the sales contract.

What is the difference between a
Realtor® and a real estate
agent?

A real estate agent (real estate sales person) is
someone who is licensed to practice (list and sell) real
estate. A real estate broker is a higher license and in
most states, permits the broker to own and operate a
real estate company. The broker license permits the
licensee to employ licensed real estate agents. A real
estate agent or real estate broker may use the term
Realtor® if he or she is a member of the National
Association of REALTORS®.

What is the Realtor®
code of ethics?

Realtor® code of ethics
pledges honestly and fidelity to all parties involved
with the real estate transaction.
Realtor® Code of Ethics.pdf

Can a real estate agent prepare a
contract of sale?

In some states, Pennsylvania for example, real estate
agents/real estate brokers are permitted to prepare a
sales contract, however; in some states, the preparation
of a real estate contract is considered the practice of
law and is prohibited unless the agent is dully licensed
as an attorney.

How much can I afford for a home
loan?

A number of factors determine how much you are able
to borrow. For example, some loans (i.e.
FHA,
VA,
USDA) allow
you to borrow more money than other loans. Your monthly
income and monthly obligations is a major determinate of
your loan amount. You can use the
Debt to
Income Calculator to get a rough estimate of your
monthly loan payment.

How is the credit score calculated?

Assuming have a developed credit history, have 3
credit scores. The largest credit reporting agencies,
Experian, Equifax and TransUnion companies each
calculate "their" credit score differently from each
other. The credit score calculation (formula) is a
secret, however, some information on the calculation has
been released. See Credit
Score

How to improve your credit score in
30 days? Can bad credit be deleted?

It is possible to delete bad credit and depending on
the credit account, errors can be removed.
Read
more

How much is pmi insurance?

The cost of PMI (private mortgage insurance) depends
on the amount of down payment, type of property (i.e.
single family, duplex), the loan amount, and of course
the private mortgage insurance company. The private
mortgage insurance rates vary from company to company
and from state to state. Read more

The calculators and information contained herein are made available to
you as a self-help tool for illustrative use only. Examples are hypothetical.
We can not and do not guarantee the applicability or accuracy in regards
to your individual circumstances. I encourage you to seek personalized advice
from qualified professionals.